N.Y. Lawmakers Pass Budget Extender as They Negotiate Key Tax Proposals, Among Other Issues
On April 1, N.Y. lawmakers passed an extender funding bill as they continue negotiations on Gov. Kathy Hochul’s $252 billion budget plan, which remained at a standstill, the New York Post reported.
Hochul and state legislators were set to go over the state’s April 1 deadline to approve a spending plan for the next fiscal year.
According to Bloomberg Tax, the governor signed the three-day budget extension to give added time for negotiating tax items within a final spending plan that will probably exceed $252 billion. The measure passed both chambers earlier on April 1.
Aside from taxation, public safety and transit financing are other major issues that are dividing Hochul and the Democratic majorities in the state Senate and Assembly. The measure cleared both chambers earlier on April 1.
The extender will allow state operations to continue as the state budget missed the deadline for the fourth straight year since Hochul became the state governor in late 2021, Bloomberg Tax reported.
The governor’s budget director, Blake Washington, said on Mar. 31 that Hochul “can’t compromise” on her discovery law changes and her involuntary commitment proposal. Hochul seems inclined to hold up talks “as long as it takes to deliver.”
Hochul has never signed a budget on time, this occasion being the fourth straight year of not making the statutory deadline.
State Senate Finance Committee Chair Liz Krueger (D-Manhattan) expressed displeasure that Hochul seems to be holding up the rest of the talks over actual fiscal budget items before getting a deal on her policy proposals.
According to the New York Post, the legislature’s budget expansion bill will cover payroll and fund other areas of state spending including Medicaid through April 3. The budget extender legislation gives negotiators until then to either reach a deal or pass another extension.
Hochul controls the extensions and is set to go past the lawmakers’ planned two-week break starting after Passover if they do not come up with a deal together by then, the New York Post reported, citing sources.